Responding to an antitrust lawsuit filed by a rival computer chip maker, Intel on Thursday denied its business practices broke any laws and dismissed the claims as "factually incorrect and contradictory.'' In a 63-page response to the 48-page suit filed by Advanced Micro Devices, Intel said its rival is smaller because of the way it handles its business _ not from any wrongdoing by the world's largest semiconductor company. "AMD has made its own business decisions and choices that have determined its position in the marketplace,'' said Intel General Counsel Bruce Sewell. "AMD seeks to instead blame Intel for the many business failures AMD has experienced.'' AMD was not surprised by Intel's response, said Tom McCoy, the company's chief administrative officer.

In the lawsuit, AMD claims its business has been harmed by Intel's practice of offering rebates, discounts and other incentives to convince PC makers around the world to use Intel, rather than AMD, chips. In terms of shipments, Intel has about 80 percent of the market of chips that power PCs running Microsoft Windows operating system. By revenue, Intel's share is 90 percent. AMD claims Intel's behavior has kept its share low even though its chips are superior.